Threatening Britain

There is a long list of anti-cryptocurrency countries i.e. countries not supporting the use of cryptocurrencies as a legal tender. Adding to that list nowhere comes Britain too.

This recent cryptocurrency slump is accompanied by the news of the introduction of new laws to govern the volatile cryptocurrency market. This new law has been brought about by Britain’s Treasury Select Committee of Lawmakers.

An inquiry on these digital currencies will be launched to bring to light the risks and opportunities of these currencies on consumers and businessman. The committee will be recommending the government after gathering evidence from different investors.

It will also consider striking a balance between protecting the citizens from unknown risks without endangering this digital innovation.

This slump might have resulted from the speculation that the recommendation will go against the cryptocurrencies. Furthermore, the Governor of the Bank of England has recently expressed his point of view regarding bitcoin.

He claimed that it has pretty much failed as the currency. He also does not consider it as a useful way of buying things.

South Korea Impact

South Korea has recently banned its citizens from trading Bitcoin and other digital currencies anonymously. Although it does not plan on making the cryptocurrency exchanges illegal.

South Korea is an integral component in the cryptocurrency world as it is the third largest market of the digital currency. Any mixed signals from this side of the world will surely shake up this market.

Korea is also an important hub for cryptocurrency speculations and is a center of attraction for many traders and speculators. This makes South Korea even more important factor when it comes to digital currencies.

East and West

US government also expressed concerns about the popularity of bitcoin among the criminals. Congress is also looking at how to better utilize this particular asset.

Notwithstanding the fact that they realize that there is a need for regulatory framework in this particular area. They understand the impact of digital currency on the citizens.

On that front, they have decided to look carefully at them so as to save the people from any scam related to them. Bitcoin regulations in the country won’t happen anytime soon but one can expect one in the coming future.

Bangladesh has also joined the party in a more aggressive manner as they are on the hunt for bitcoin users. The use and trading of Bitcoin are illegal in the country.

Moreover there are reports of a forceful crackdown on the daddy of virtual currency traders. They have also warned the financial institutions against digital currency users. Cybercrime investigators have also been involved in this matter.

Poland’s Smear Campaign

Poland officially recognized the trading of Bitcoin and other cryptocurrencies in the country back in 2017. It worked in the favour of cryptosphere but the recent developments have a different side to it.

The Polish Central Bank allegedly launched a smear campaign against the cryptocurrencies. It is said that the Bank paid Youtubers to instill in the minds of the citizen the fear of losing money by trading in digital currencies. This campaign to change the perception of the Poland citizens certainly reveals the intentions of the country towards them.

The need for regulations has posed a major problem for these currencies. Few countries are yet to take a call on cryptocurrency market.

France and Germany recently place the policy and monetary implication of virtual currencies as an important agenda of the coming G20 meeting.

The pull might get stronger as time passes but future is uncertain and there are also crypto supportive countries like Saudi Arabia. The reason is that the country has signed a deal with Ripple to help banks in settling the payments using the technology.

Venezuela has launched a state back cryptocurrency, Petro becoming the first nation to do so. This oil backed crypto raised about $735 million on the first day of sale.

In short, though few countries are in favour of the digital currencies most of them are looking to develop a regulatory framework for the safety of its citizens.

The slump might well be the result of the sentiments developed in the minds of investors due to the regulations and trading ban approach by the countries.

Technical Backing

On the contrary, many experts think that the threat of regulations is not as strong as it was before and has eased a bit. They consider profit taking to be the reason for this slump.

Investors bought bitcoin in their dips at around $6000 levels and almost doubled their money by selling it around $12000 levels. Experts considered the latter level as the resistance level.

As far as other currencies are concerned, they are pulled down by Bitcoin. The sell-offs were the result of falling bitcoin prices.

Experts feel that the market is trading very technically right now and estimated the support level to be around $9500. It was not surprising for them to see the sell-off at the $12000 level.

As soon as the profit taking routine gets over they expect to see the long-term appreciation of these currencies.

Happy investing!!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.

Related

Invest in Mutual Funds for Free

Start investing in 2 mins. Direct plans for free. Join the community of 9L+ users.

RESOURCES

Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.

Groww is an investing platform where users can find the best mutual funds to invest in and can invest their money without any hassles. Groww provides objective evaluation of mutual funds and does not advice or recommend any mutual fund or portfolios. Investor shall invest with their own descretion. Groww does not guarantee any returns and safety of capital.

Groww helps investors in the following way

· By providing objective evaluation of products available on Groww

· By bringing up red flags, if any, involved in the products. However Groww does not guarantee to bring out all red flags

· By being transparent about fees and charges involved in investing in a product

· By clearly representing the risk associated with buying a product

SECURE TRANSACTIONS ON GROWW

All transactions on Groww are safe and secure. Users can invest through SIP or Lumpsum using Netbanking through all supported banks. It uses BSE Star MF (with Member code 11724) as transaction platform.

MUTUAL FUNDS SAHI HAI

Mutual fund investments are very popular with individual investors because of the benefits they provide. Among the many advantages, the most important factors that drive investors to mutual funds are that Investors can

Portfolio is collection of mutual funds designed to meet your investment goals. Investing in mutual fund portfolios helps you in diversifying your investments and reduces the risk. Portfolios also help you in assigning an investment goals and make it easy for you to save for and achieve your goals. You can create a portfolio yourself or ask an expert to build it for you.

DISCLAIMER

NextBillion Technology Private Limited (with ARN-111686) and Finvantage Investment Adviser Private Limited (INA200008981) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Unless otherwise specified, all return figure shown above are for illustrative purposes only. Actual returns will vary greatly and depends on personal and market circumstances. The information provided by our blog is educational only and is not investment or tax advice. NextBillion Technology Private Limited and Finvantage Investment Adviser Private Limited does not endorse views given or portfolio designed by third parties on the website, and these are their independent opinion on the scheme or performance of the schemes. Terms and conditions of the website/app are applicable. Privacy policy of the website are applicable. Prevent unauthorised transactions in your account. Receive information of your transactions directly to your mobile/email. Issued in the interest of investors, KYC is one time exercise while dealing in Mutual Funds - once KYC is done you need not undergo the same process again when you approach another Mutual Fund.